Airbnb and short-term rental rules in Lunenburg, Nova Scotia
Written by Casa Scotia, a Nova Scotia short-term rental manager. Not affiliated with any municipality or the Province. How we keep our interest out of it →
At a glance
It depends on the zone, and the zone is only the first test. Short-term Rental is a listed use in six zones, one per lot, with no primary-residence test; not in accessory dwellings or accessory buildings.
Can I?
The home you live in (as Lunenburg’s by-law defines it)In some zones
The Town of Lunenburg, Nova Scotia, names short-term rental as a use of its own in its Land Use By-law and permits it zone by zone, with no condition that the owner live in the home. Its 3% levy takes effect on 1 Jan 2027 (as of 28 Sep 2026).
The Town is a separate municipality from the District of Lunenburg, with its own by-laws and its own office.
Is a short-term rental allowed here?
Across the unit
The home you live in (as Lunenburg’s by-law defines it)In some zonesAsk the Town of Lunenburg's Planning & Permits office whether a short-term rental is permitted in the Rural Use Zone; the by-law's use table lists it and the Town's page does not.
A home you don’t live inIn some zonesAsk the Town of Lunenburg's Planning & Permits office whether a short-term rental is permitted in the Rural Use Zone; the by-law's use table lists it and the Town's page does not.
one short-term rental per lot (s.6.4.11); none in an accessory dwelling or accessory building (s.6.4.12)
“[Table of Permitted Uses, Commercial Uses, p.21] Short-term Rental | RL P | RM P | RH P | CM P | CG P | W - | M - | MM - | RUR P | INS - | PR - | subs. 6.4.11 and 6.4.12. [s.6.4.11, p.26] "Only one short-term rental shall be permitted on a lot." [s.6.4.12, p.26] "Short-term rentals shall not be permitted in accessory dwellings or accessory buildings." [Part 8, p.85] "Short-term Rental means the use of a dwelling unit or part thereof for commercial overnight accommodations for consecutive periods of 30 days or less per party and may include the rental of the entire dwelling unit to one party or to multiple parties."”
The by-law treats a short-term rental as a commercial use of a dwelling unit, or part of one, and sets no condition that the owner live there. Its bed and breakfast and home-based business rules do require a resident, so those are separate uses with their own rules.
The use zone decides whether a lot can hold a short-term rental, and the by-law's Use Zoning Map shows each lot's use zone. Ask Town of Lunenburg, Planning & Permits, 902-634-4410 ext 225, contact page to confirm it before you apply for anything.
Municipal step
Ask Town of Lunenburg, Planning & Permits, 902-634-4410 ext 225, contact page which document it issues for provincial registration.
The Province's application asks for proof that the rental complies with municipal rules, so the Town's part is the document you bring to it. Provincial registration →
Register for the marketing levy and remit it on the bookings you collect it on. Details
Then register each unit with the Province and show the number on every listing. The provincial checklist →
What it costs an owner
Cost
The home you live in
Commercial short-term rental (a home you don’t live in)
Provincial registration
$50 a year
$500 per unit a year
First year, municipal and provincial
$50
$500
On a phone, swipe the table sideways to see both columns.
A personal vacation home (a home you don’t live in, kept mainly for your own use; 150 rental days per registration year; an applicant may register only one personal vacation home) registers as a traditional tourist accommodation instead: $50, or $150 with five or more bedrooms a year (Regulations s.2(1), s.14).
The levy and HST are charged to guests, not owners; they are in Marketing levy.
Marketing levy
Starts 1 Jan 2027
Council adopted a 3% marketing levy (null). It takes effect on 1 Jan 2027; no levy applies to stays before then. Ask Town of Lunenburg, Town Hall, (902) 634-4410, contact page whether it covers stays after that date booked before it.
Who collects it
On Airbnb, you add it to the guest’s bill and remit it (as of 28 Sep 2026)
On Vrbo, you add it to the guest’s bill and remit it (as of 28 Sep 2026)
Booking.com’s tax page doesn’t list Lunenburg (checked 28 Sep 2026). Unless your payout shows Booking.com collecting it, you add and remit it.
On direct bookings, you add it to the guest’s bill and remit it (as of 28 Sep 2026)
Charged to guests, not an owner cost
The levy and HST (14%) are added to the guest’s bill. HST is charged on the levy as well as on the room: a municipal levy is part of the price HST applies to, and no Nova Scotia marketing levy is on the federal list of levies left out of that price. The levy is separate from HST, which is a federal and provincial sales tax.
Until the start date there is nothing to charge a guest or remit to the Town. From then, the Town's levy page says operators stay responsible for collecting and remitting the levy however a booking is received or paid for, so a platform taking the payment doesn't shift that duty.
For a stay booked before the start date with nights after it, ask Town of Lunenburg, Planning & Permits, 902-634-4410 ext 225, contact page whether the levy applies.
Provincial registration
Register each unit with the Province before advertising it. The first application includes Lunenburg’s land-use document; a renewal doesn’t need it again unless the Province asks.
Fee here: $50 a year for the home you live in; $500 per unit a year for a commercial short-term rental (a home you don’t live in); a personal vacation home pays the traditional rate, $50 or $150.
Show the registration number on every listing, and renew by April 1 each year.
Before exterior work for a rental in Old Town Lunenburg, such as a new exit stair, ask Town of Lunenburg, Planning & Permits, 902-634-4410 ext 225, contact page whether the work needs heritage approval and what that approval costs.
What we haven't confirmed yet
Ask the Town's Planning & Permits office whether a short-term rental is permitted in the Rural Use Zone; the by-law's use table lists it and the Town's page does not. (checked 6 Oct 2026 · source)
Ask the Town's Planning & Permits office whether converting an existing dwelling to short-term rental use needs a development permit. (checked 6 Oct 2026 · source)
Is the Town of Lunenburg's by-law the same as the District's?
No. The Town of Lunenburg and the Municipality of the District of Lunenburg are separate municipalities, each with its own land-use by-law and its own office; the Town's rules stop at the town line. Nearby and often confused →
Does a Lunenburg short-term rental owner have to live there?
No. The Town's Land Use By-law sets no condition that the owner live in a short-term rental, unlike its rules for a bed and breakfast, so whether a lot can hold one turns on its zone. Is a short-term rental allowed here? →
Can I run more than one short-term rental on a Lunenburg lot?
No. The Land Use By-law's limit is one short-term rental per lot (s.6.4.11); none in an accessory dwelling or accessory building (s.6.4.12). A lot with more than one dwelling can still hold only one short-term rental. Is a short-term rental allowed here? →
When does Lunenburg's levy start, and who collects it?
The 3% levy takes effect on 1 Jan 2027 (as of 28 Sep 2026), and nothing is owed before then. The Town's levy page says operators stay responsible for collecting and remitting it, including where a platform such as Airbnb or Vrbo takes the payment. Marketing levy →